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SAIC Wins County of Orange's $64-Million IT Services Contract

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Science Applications (SAIC - Free Report) recently secured a $64-million contract from California’s County of Orange to provide information technology (IT) managed services. Per the firm-fixed-price extended contract, SAIC will offer IT solutions to the county’s agencies and departments.

The contract will ensure efficiency in the county’s operations, including data center, desktop, service desk, applications, networks, voice environment and security. Thereby, it will optimize the county’s cost structures and better serve its residents.

The latest order has a performance period of two years with two one-year options. The move further reinforces SAIC’s position as a reliable IT solution contractor.

The company is focused on the federal government marketplace and capturing more market share. It intends to drive operational excellence by intensively focusing on its organic and inorganic growth strategy and strengthening existing customer relationships while building newer ones. Higher spending as proposed in the latest federal government budget is anticipated to accelerate the pace of contract awards, which will be beneficial for SAIC’s top-line growth.

SAIC won $410 million in contract awards from space and intelligence community organizations for the fourth quarter of fiscal 2022. In December 2021, the company received a $99-million contract from the U.S. Air Force. In the same month, it secured a $1.1-billion contract to produce, assemble, test and deliver the U.S. Navy’s MK 48 MOD 7 Torpedo Afterbody Tailcones (AB/TC) and MK29 Mod 0 Warshot Fuel Tanks.

During fourth-quarter fiscal 2022, SAIC reported revenues of $1.8 billion, witnessing a 4% rise from the year-ago quarter. This was mainly driven by contributions from the newly acquired Halfaker business and the ramp-up of new and existing contracts.

The Zacks Consensus estimate for SAIC’s first-quarter fiscal 2023 revenues is pegged at $1.93 billion, suggesting year-over-year growth of 2.8%.

Zacks Rank & Key Picks

SAIC currently carries a Zacks Rank #3 (Hold). Shares of SAIC have declined 1% in the past year.

Some better-ranked stocks from the broader Computer and Technology sector are Arista Networks (ANET - Free Report) and Gogo (GOGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Analog Devices (ADI - Free Report) carrying a Zacks Rank of 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Arista Networks' first-quarter 2022 earnings has been revised upward by 4 cents to 81 cents per share over the past 60 days. For 2022, earnings estimates have moved 4.5% north to $3.69 per share in the past 60 days.

Arista Networks' earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 7.7%. Shares of ANET have rallied 60.9% in the past year.

The Zacks Consensus Estimate for Gogo's first-quarter 2022 earnings has been revised a penny downward to 13 cents per share over the past seven days. For 2022, Gogo's earnings estimates have moved north by 25% to 65 cents per share in the past 60 days.

Gogo's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 65%. Shares of GOGO have soared 123.4% in the past year.

The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised upward by 4 cents to $2.12 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 11 cents to $8.43 per share in the past seven days.

Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have fallen 0.2% in the past year.

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